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AVOCA, Pa., Feb. 16, 2021 /PRNewswire/ -- ProGuard Warranty, a leading vehicle protection product provider, has launched a Certified Pre-Owned (CPO) program to better position independent and franchise dealers for the current automotive retail environment. ProGuard's CPO program helps dealers improve profit margins and inventory turns by providing higher quality vehicles backed by a 125-point certification process for buyer's peace of mind.
(PRNewsfoto/ProGuard Warranty)
Prior to COVID-19, CPO had been one of the strongest performing segments in the automobile retail market. That changed during the initial quarantine period when shoppers were unable to purchase cars on-site, resulting in a drastic decline in auto sales. At the same time, the forced closures of auto plants created a lack of new car inventory, further reducing revenue. "Rather than sit on unsold units, dealers released a significant amount of CPO-eligible inventory into the non-CPO used-vehicle market to move vehicles off the lot and recoup inventory costs," said Dominic Limongelli, President of ProGuard Warranty. As the year progressed, auto sales recovered, and 2020 CPO sales ended up only slightly underperforming expectations.